Former Chief Statistician of India has said that Central Statistics Office (CSO) needs to rethink how it estimates the growth of the informal sector as the current method is no longer accurate.
The current method uses the corporate sector data to estimate the activity in the non-corporate sector.
However,this works only as long as the technologies being used in both sectors are reasonably similar.But Indian corporates especially the large ones have been using greater technology and this is not the case for the non-corporate sector.
He said that one way in which the CSO could better estimate the informal sector activity is to use employment data.
The Central Statistics Office(CSO) is a governmental agency in India under the Ministry of Statistics and Programme Implementation.
It is responsible for coordination of statistical activities in India and evolving and maintaining statistical standards.